Is Expensive Legal Help Worth It?

Choosing the right attorney to help you with a legal problem is almost always a difficult decision.  Part of the problem is that there are so many attorneys to choose from.  Cost is just one consideration, but often a major one. 

If you are given the names of two or three attorneys who are recommended, how do you choose the best one for you?  Ultimately, chemistry, or your gut feeling, may be the most important factor, but cost is still involved.

When you are deciding to go with the more expensive attorney or the more affordable one, here are some points to consider about the value you may get with the more expensive attorney.

1.  The attorney and staff will probably be more experienced.  Usually, attorneys raise their rates over time as they gain more knowledge and experience.  That will probably, although not always, translate into better representation.

2.  You should receive more personal attention.  That should lead to customized solutions to problems.  You can ask questions, always a good idea, and get thoughtful responses.

3.  The case should move along.  The attorney and staff should be efficient because of their experience, so they should know what to expect and how to respond to issues.

4.  There should be quality staff supporting the attorney.  That's very important, but service can be more efficient and you may save some money by having an assistant handle certain steps in a case.

5.  The attorney and staff should be willing to do all necessary work.  Sometimes lower-charging or flat-fee attorneys cut corners because they aren't getting paid for extra work.

When you are hiring an attorney, there are many factors to consider.  Cost is one of the primary ones. My suggestion is to not automatically write off an expensive attorney, as long as you can figure out a realistic way to pay the fees.  You should commit only to what you can afford.

The Hidden Costs of Cheap Legal Fees

When you're looking for an attorney to hire, you're probably doing doing a balancing act.  You want to get the best possible attorney, but many people are concerned about keeping the attorney's fees as low as possible.

To complicate matters, there's not always a direct correlation between higher fees and quality of attorney.  Most often, more experienced attorneys charge more and probably do a better job than less experienced attorneys. But, that's not always the case.

When you're choosing an attorney, you have to find the right combination of experience and affordability.  Chemistry is probably the key to focus on.  Make sure, regardless of the cost, that the attorney makes you feel like there's a good fit.

For those who focus almost exclusively on paying the lowest attorney's fees, here are some thoughts to consider.

1.  You're going to end up with a much less experienced attorney.  Now, you may get an attorney who has adequate experience for your needs, and that's what you should aim for. A lack of experience may translate into missed opportunities for settlement or for new approaches.

2.  Watch out for a high-volume practice.  If your attorney charges  very low fees because he or she handles a high volume of cases, you are probably not going to get much attention.  You may be adequately represented, but you may well feel very uncomfortable with the lack of contact with the attorney. You will be one of many clients. 

3.  You may end up with standardized or guideline orders.  Your case might benefit from personal attention and extra preparation, but you're not likely to get them from a low-cost attorney.

4.  There may be a turnover in attorneys and staff in a low-cost law firm.  If they aren't charging clients much, they usually don't pay their attorneys and staff much, so there's frequent turnover as employees look for better-paying jobs.

5.  You're probably just paying for minimum efforts.  Low pay = low effort.  If your case has some unique details (and whose doesn't?), you may not get your needs met.

Think hard and pay attention to the chemistry between you and any prospective attorney.  Money is a realistic consideration in hiring an attorney, but don't let it be the only one.

Creative Ways to Pay Your Attorney

One of the main reasons why people change attorneys in the middle of  divorces and other court cases is inability to pay for the attorney.  Attorneys prefer to not withdraw and often will be patient up to a point, but they can't work and not be paid.  It's best to deal with the issue early on.

What can you do if you think you can't afford to pay your attorney?  Here are some options to consider.

1.  First, do a realistic evaluation up front.  Sure, you want the best attorney available, but can you afford that attorney? Look at your income and resources, including the suggestions below.

2. Find an attorney you can afford.  Did you know that there are a lot of very good attorneys around who would be happy to represent you?  A higher hourly rate doesn't necessarily mean an attorney is the best one for you.  There are many good attorneys who charge a variety of hourly rates.  Don't stop with the most expensive attorney.  Try to start off with an affordable attorney you have good chemistry with.

3.  Some attorneys will work out a payment plan for you.  Some don't.  It's a good discussion to have up front, rather than waiting until you fall behind on payments.

4. You may be able to pay a flat fee for services.  Very few attorneys do that, but some will.  I have done it in contested cases with payment in stages, and that can work out. Keep in mind, "Flat fee"  doesn't  equate with "cheap".  The fees may sound high all at once, but there is certainty about the total amounts to be charged and you can plan how to pay it.  It's another good discussion.

5. Most attorneys will take credit cards for payments of attorney fees.  It's not exactly free money, but it can help you manage the payments.

6. You might be able to get money from your spouse by agreement or court order.  If there's money available, most courts will try to get attorneys paid so the parties can be represented.

7.  Maybe you can take funds from an asset.  There may be bank accounts, investments or other savings that could be tapped. If there's an injunction or restraining order, you may need permission to access some funds.

8. Maybe the attorney could be paid from the proceeds from the sale of  your house, if it's going to be sold.  That would take agreement by all parties and attorneys, but it's frequently done.

9.  You could take out a loan from a bank or a 401K account or use a line of credit. If there are court orders in effect already, make sure you get permission and don't violate the orders.

10. You may need to borrow from family or friends.  No one likes to do that, but it might be your only option.

As you can see, there are potentially many different ways to pay attorney's fees.  The best approach is to talk early and often with your attorney about the fees so payments can be managed.

Tips for Saving Attorney's Fees

Peggy Roston, who writes the Alaska Divorce Blog, recently had a brief post with some excellent common sense ways to cut down on attorney's fees. Most people going through a divorce or other family law issue are interested in conserving their funds and not over-spending for the attorneys. Here are Peggy's ideas:

"Divorce litigation is extremely expensive. Your attorney will charge you for the time he or she spends writing and responding to letters, emails, and motions. Some of the time your attorney has to spend on your case is unavoidable. But there are a few things that you can do to help your attorney handle your case in a cost-effective manner.

"• Communicate by e-mail rather than by telephone. Telephone calls tend to be more expensive because of the pleasantries exchanged before you and your attorney get down to business.

"• Keep your e-mails short and to the point. Your attorney may receive hundreds e-mails a day. If you keep your emails short and to the point, your attorney can respond quickly to the issue you have raised without having to wade through a lengthy email.

"• Organize your financial documents before you give them to your attorney. Parties in a divorce case must exchange tax returns, credit card statements, brokerage statements, bank statements, and personal property lists. Respond promptly to your attorney’s request for financial information. If you have personal or work time-constraints, I suggest you call your attorney to ask for a referral to a financial professional who can help you out. Having organized financial documents can save you hundreds or possibly thousands of dollars in attorney’s fees or paralegal fees and can keep your case moving forward."

In general, clients can save money by controlling their urge to call up their attorney to discuss every issue that comes up. It also helps to save money when clients take on as much of the preparation as they are competent to do. Gathering and organizing records is vitally important and can result in a signifcant saving of money.

Has anyone else come up with good ideas on how to save attorney's fees? Please send your comments with suggestions.

Why Is There No Free Consultation?

One of the first questions we often hear when a prospective client calls us is, "Do you have a free consultation?" It's a fair question and an important one. Some potential clients assume that they will be paying a fee for their initial visit with an attorney, but others think they should not begin to pay until they have actually hired an attorney. On the other side of the room, some attorneys believe in charging for every conference with a client or potential client, while other attorneys want to encourage people to come see them, so they provide free initial conferences.

Some attorneys choose a middle ground and charge a reduced fee for the initial meeting. Many of them believe charging even a small fee will weed out the non-serious potential clients who are looking for feedback, ideas or affirmation that they are right, without having incurred any cost for the information or support.

For potential clients who have trouble understanding why they should be charged for the initial time they visit with an attorney, here are some explanations some attorneys use.

• For the attorneys who charge by the hour, time is money. They keep their business open by charging for the time they spend working in some fashion on the client's problems. Real information is provided in real time to the client. For the attorney, the service provided is essentially the same type of service they will be providing once they are hired: listen, ask questions, determine needs or goals, gather information, analyze, strategize and create plans.

• Other professionals routinely charge for their time and services at an initial assessment. This includes doctors, mechanics and electricians (just to name a few). The time and skills of the professionals are being applied to the problems at hand.

• For the attorneys who practice what is called value pricing, or use flat fees, they focus on the valuable information, forms and other paperwork they may provide the client. They also add value by listening and counseling with the client. Here is an example on the higher end of service and a corresponding higher fee: There is an attorney in Calgary, Canada who has developed an excellent product for the initial conference. He spends as long as the client wants, usually 2 to 3 hours, records the session and provides a copy of the recording, and produces a customized approach to the client's issues. Other attorneys provide a less robust experience, but nevertheless provide excellent value to the client just by doing the same things some attorneys do as they charge by the hour.

• In addition, when an attorney meets with a prospective client, the attorney becomes immediately disqualified from representing the spouse. That can result in a loss of income for the attorney.

• Another consideration is that the attorney is unable to work on other clients' business when they are attending an initial meeting with a potential new client. That means less income for the attorney and no progress on the other client's issues. Even if it only delays the work, the delay can become a problem for the client and then the attorney. Most clients prefer not to be put on the back burner. They want their matter resolved NOW!

Although we are often told that other Fort Worth or Tarrant County divorce and family law attorneys provide a free initial consultation, we choose not to do so. If the client prefers a free initial meeting, then we encourage them to visit one of the free ones. There's no hard feelings on our end. For a beneficial attorney-client relationship to exist, there must be good chemistry and at least some shared values. If there is disagreement between attorney and client on the fee issue from the outset, then the relationship is not going to work out. It is best for the client to find an attorney whose approach to the case is as consistent as possible with the client's approach.

In addition, busier attorneys will charge for the consultation. To not charge for the consultation would subject the attorneys to spending a lot of uncompensated time with the new client. Again, that prevents the attorney from being able to do significant work on other cases.

Conclusion: The fact that an attorney chooses to charge for all initial consultations does not mean that a client is "wrong" for wanting a free consultation. The attorney isn't "wrong" either. There are other attorneys who will provide a free initial consult. The solution is to match up the clients who want a free interview with the attorneys who want to provide them. The way to do that is for the potential client to raise the issue when the initial consultation is being set up. Just speak up and discuss the issue up front.

Will I Have to Pay My Spouse's Attorney's Fees?

This is part of my Frequently Asked Questions series. Many times, I hear this question early in the litigation process. Often one side will threaten to make the more financially secure person pay for the other person's attorney. It's often used to irritate a spouse who controls the funds and who often is used to controling most things in the relationship. Sometimes it's just a matter of economics -- one side has all the money, but both sides need lawyers.

The answer to the question in Texas is usually, "It depends."

Ultimately, all the money comes from the same pot, the community, unless one party has some separate funds (inheritance, gift or possessed prior to marriage, for example). If the only source of money to pay attorney's fees is current income, and there is a disparity of income and/or debts being paid, most courts around here will order some equalizing of attorney's fees. If both parties have adequate income or credit to be able to pay their own attorney, the court may not require the other party to pay for them.

The party receiving payment often does not receive the full amount requested, but Courts usually try to provide a minimum, but adequate, amount. The amount received depends on a number of factors, including the complexity of the case, the resources available, other obligations of the parties and the expected cost of each attorney, among other things.

Attorney's fees are often part of a final judgment, although they may just be considered as part of the division of the property. The Court will usually take into consideration a number of factors, including effort and cooperation by each party, how well or badly the parties behaved, income disparity and available resources, among others.

Since the funds used to pay attorney's fees are usually community funds, the legal reality is that the community is paying the fees, although it may feel different to the paying spouse. Best advice for the spouse controling the money: Be prepared to pay. Best advice to the spouse needing money: Don't count too heavily on the payment because the Judge may not award as much as you need, or even anything at all.